The diversified US manufacturer also cut its 2009 profit forecast by roughly 13 per cent and lowered its revenue target as it is no longer relying on an economic recovery later this year, its chief executive said.
United Tech shares rose about 6.7 per cent amid a broad stock market rally as Wall Street had regarded the company's profit target set in December as optimistic.
"Conditions have gotten very challenging," CEO Louis Chenevert told investors in a presentation that was monitored over the Web. "We intend to be fully prepared for a deeper and longer deterioration in market conditions."
Combined with 2008 job cuts, the latest restructuring plan will reduce the Hartford, Connecticut-based company's workforce by about 18,000 positions.
As of December, United Tech employed about 220,000 people.
"The economic recovery previously anticipated in the second half of 2009 now appears unlikely," Chenevert said.
Unitied Tech said it expected to earn $US4 ($6) to $US4.50 per share in 2009, lower than the $US4.65 to $US5.15 it previously forecast.
Analysts were looking for profit of $US4.60 per share, according to Reuters Estimates.
The troubled company also said it expected $US750 million in restructuring costs this year, partly offset by $US200 million to $US350 million in gains. All told, one-time items will weigh profits down by 30 to US40 cents per share for the year.
The company, which also makes Sikorsky helicopters, now looks for revenue of $US55 billion this year, down from a prior forecast of about $US57 billion. It said it would cut its planned budget to repurchase shares by half to $US1 billion.
It plans to reduce capital spending about 20 per cent from 2008 levels, to below $US1 billion.
One investor said the moves were a sign that United Tech was trying to stay a step ahead of a deteriorating world economy.
"The more you can get ahead of the ball, rather than behind it, you're going to get ahead in this marketplace," said Peter Klein, senior portfolio manager at Fifth Third Asset Management in Cleveland, Ohio, which owns United Tech shares.
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